However, since chains such as Randalls and Kroger have closed several stores in the region, township leaders and the leasing company Regency Centers said they are looking at options other than a single large grocery store for the remaining spaces, and several tenants said anchors are needed to boost foot traffic.
How we got here
Both Sterling Ridge and Panther Creek have seen the departure of anchor grocery stores in their village centers since 2020. Most recently, Kroger closed in Sterling Ridge in April.
However, in Panther Creek, where a Randalls store closed in 2020, a Sprouts grocery store is slated to come in next year, according to information from Regency Centers.
Craig Eissler, vice chair of The Woodlands Township board of directors, said the village centers were originally designed to serve the needs of residents, but the way those needs are served is evolving.
“It seems that [the pandemic] ... really changed the habits of consumers and residents,” Eissler said. “The advent of the gig economy and delivery services has allowed residents to shop from any grocery store they desire from the comfort of their own home.”
For Regency Centers, senior leasing agent Rip Reynolds said that means diversifying to find the right tenants.
In addition to Sprouts, Reynolds said ongoing discussions with prospects are underway with a tenant for the remaining anchor space in Panther Creek. Lease negotiations are also underway with a prospective tenant for 36,000 square feet at Sterling Ridge, he said. While he said he cannot disclose details about the tenant, he said it is in line with other uses previously found in the community.
“In The Woodlands, we see opportunities beyond traditional grocers, including fitness, medical and service-driven uses that still draw consistent traffic and support neighboring retailers,” Reynolds said.
The conditions
Regency leasing rates are not publicly available, but second quarter 2025 estimates from Caldwell Cos. show The Woodlands area rates exceed regional rates.
Shelli Moran, owner of Cellar 24 in Sterling Ridge, said leasing prices have been a concern for her amid slowing foot traffic.
Angela Colton, executive director of The Woodlands Children’s Museum in Panther Creek, said she feels the cost has been reasonable for the location, which it has occupied for 15 years.
Zooming out
Other factors for businesses looking to open in The Woodlands to consider are local development standards for commercial properties, which are part of the township’s covenants and standards.
Terry McBurney, owner of The Republic Grille in Panther Creek, said he feels the center will need to be updated and renovated to grow its appeal and attract tenants.
Reynolds said the leasing company works with the township’s appointed Development Standards Committee to ensure the standards of the community are followed. Upcoming improvements planned at Panther Creek include new beams, paint and light fixtures to improve the overall aesthetics, he said.
What's being done
While Sprouts will fill about 30,000 square feet at Panther Creek, retail vacancies are increasing in the region, according to recent regional data.
Wade Greene, principal and executive vice president at Colliers in Houston, said the grocery sector is in demand in the region’s retail market. However, he said the most in-demand grocery store has been H-E-B, but the vacant spaces in the village centers are too close to current H-E-B locations.
Several standalone buildings not owned by Regency are also on the outskirts of the village centers, such as a vacant 3,000-square-foot former bank space available for sublease by PNC Bank in Panther Creek, Reynolds said.
Eric Fishhaut, president of the Sterling Ridge Village Association, said residents would benefit from other types of offerings.
“The goal to a center like that is that there needs to be different things that attract people and feeds the other,” Fishhaut said. “It would be great to have some sort of an entertainment venue to attract families.”
Greene said a robust anchor is important to keep centers active.
“The lack of activation of a [space] can kill a center,” he said.
- "A good anchor tenant is key to the village centers thriving," Moran said.
- “I think the owners of the shopping center can see [how the museum] adds to the foot traffic and helps other merchants," Colton said.
Vacancies at other village centers in The Woodlands include a 9,000-square-foot space occupied by CVS until April 2023 at Cochran’s Crossing, currently under consideration for a Goodwill, according to a filing with the Texas Department of Licensing and Regulation.
Reynolds said he was not able to discuss the matter, but he said it is expected to go before the DSC in November. Goodwill did not return a request for comment as of press time.
A unique approach to village center vacancies unfolded this fall in Grogan’s Mill where a land swap between Montgomery County and Howard Hughes replaced a vacant Randalls with the new Kevin Brady Library and Community Center.
Eissler said while the private-public partnership is not likely to be repeated across multiple village centers, township leaders can still work with private entities toward the goal of filling the spaces.
“It’s out of our hands, but what we can do is be a good advocate for our residents and talk with those landlords and the owners of the centers and have that dialogue about what we’re hearing from our residents, and thoughts and ideas of how things could improve,” he said.
